Merc looks at Ssangyong

STUTTGART: Mercedes-Benz of Germany is believed to be evaluating the asset value of its Korean partner, Ssangyong Motor, in order to study the possibility of investing more in that company.

An official of the Ssangyong Group said recently that the German automaker started evaluating the assets of Ssangyong Motor.

Mercedes-Benz is doing this evaluation because it wants to finalize its investment amount into Ssangyong. Previously, the two automobile companies reached an agreement in principle that the German automaker will cooperate with Ssangyong Motor to increase its capital size.

"Mercedes-Benz will have to borrow money from a third country in order to invest in Ssanyong Motor. So, the examination of asset value of Ssangyong Motor is being required," the official said.

Currently, Mercedes-Benz holds a 2.5 percent stake in Ssangyong. According to current regulations, the German automaker will be able to raise its equity ratio up to 49 percent.